Post by
rsmerchi on Oct 29, 2016 7:50am
Secured debt motivates unsecured to restructure
The new $350 million in secured senior debt was brilliant, as it now places the unsecured creditors in a difficult position, if in fact the company does have cash flow problems. More importantly is lenders, even secured lenders, do not lend unless they are certain the loan can be serviced. I thinki this was a positive development.
Comment by
lnvestor198 on Oct 29, 2016 8:31am
Honey.... the unsecured debt is selling for 60 cents on the dollar now and yielding +20% That is a fact. It is not "short and distort" If bondholders are willing to take that much of a haircut, that should be troubling to you if you are an equity holder (translation: your equity is worth zero according to the debt market)